This Time It's Really Different—Detailed Analysis of the Eight Departments' 'Notice on Further Preventing and Disposing of Virtual Currency and Related Risks'
Summary of the "Notice on Further Preventing and Disposing of Risks Related to Virtual Currency" Jointly Issued by Eight Departments
On February 6, 2026, eight Chinese regulatory bodies, including the People's Bank of China and the Ministry of Public Security, jointly issued a significant notice (referred to as the "2.6 Notice") targeting risks associated with virtual currencies. This notice marks a pivotal shift in China's regulatory approach, as it explicitly revokes previous key documents, including the 2021 notice (commonly known as the "924 Notice"), which is unprecedented in the history of virtual currency regulation in China.
Key changes and implications include:
1. **Broader Regulatory Scope:** Unlike the previous 924 Notice, which focused on "trading and speculation risks," the 2.6 Notice addresses "virtual currency and related risks" more broadly.
2. **New Stance on Stablecoins:** A major breakthrough is the explicit statement that stablecoins pegged to fiat currency are "de facto performing some functions of legal tender." This raises significant concerns, particularly for OTC (over-the-counter) trading platforms, as it could potentially be interpreted as engaging in illegal foreign exchange activities, which carries severe penalties including confiscation of illegal gains and fines up to five times the amount involved.
3. **Strict Prohibition on RWA:** The notice firmly prohibits any Real World Asset (RWA) tokenization activities within China. Domestic entities are completely barred from such activities. Furthermore, foreign companies and individuals are prohibited from providing RWA services to domestic entities. However, a potential avenue is suggested for domestic financial institutions to engage in RWA services *overseas*, subject to specific requirements and supervision under the principle of "same business, same risks, same rules."
4. **Enhanced Enforcement Mechanisms:** The notice outlines a robust, multi-layered enforcement framework ("8+3" – eight central departments plus local internet, procuratorate, and judicial authorities). It emphasizes coordinated central-local efforts, strengthened risk monitoring using advanced technology and data sharing, and a stringent crackdown on illegal activities. This includes a continued ban on virtual currency "mining," severe penalties for crimes like fraud, money laundering, illegal operations, pyramid schemes, and illegal fundraising involving virtual currencies, and mandates for judicial handling of crimes.
5. **Extraterritorial Application:** The notice asserts jurisdiction over domestic entities operating related businesses overseas. They are prohibited from issuing virtual currencies, even outside China. Domestic financial institutions' overseas subsidiaries must comply with specific requirements if providing RWA services abroad.
6. **Legal Responsibility:** A new section explicitly outlining legal liabilities has been added, underscoring the seriousness of the regulatory stance.
In summary, the "2.6 Notice" represents a significant hardening of China's position on virtual currencies. It expands regulatory scope, introduces harsh new interpretations (especially concerning stablecoins and OTC trading), completely forbids RWA domestically, and establishes a powerful, technology-driven enforcement regime to prevent and处置 (dispose of) associated risks, potentially reshaping the industry landscape.
比推02/07 01:02
